Nov 5 (Reuters) - Yum Brands ( YUM ) reported a surprise

fall in worldwide same-store sales on Tuesday as its KFC ( YUM ) chain

grapples with sluggish demand in the U.S., as well as choppy

international sales.

KFC's ( YUM ) same-store sales in the U.S. tumbled 5%, marking their

third straight quarter of declines this year.

The drop came even as Yum in August launched $5 offers on

two new items under its "Taste of KFC ( YUM )" value menu, including

eight-piece chicken nuggets pack as well as a chicken nugget

meal bowl in addition to the two-piece drum and thigh meal.

The company was responding to the ongoing "value wars" in

the fast-food industry from peers such as McDonald's and Burger

King.

The chain, like many of its peers, has also contended with

diners seeking deals and discounts when eating out to counter

menu prices that remain high.

Yum's Tex-Mex food chain Taco Bell, in contrast, remained a

bright spot. U.S. same-store sales rose 4%, the 11th straight

quarter of increase.

The company's worldwide comparable sales fell 2%, compared

with market expectations of a 0.23% rise, as per data compiled

by LSEG.

In international markets, the Pizza Hut parent faced the

protracted impact from boycotts related to Israel's war in Gaza.

Sales impact from the conflict had surfaced in several other

markets beyond Malaysia, Indonesia and the Middle East,

executives had said in August.

Burger King parent Restaurant Brands International

missed quarterly revenue expectations on Tuesday, while

McDonald's reported its biggest quarterly global sales

drop in four years last week.

Excluding items, Yum earned $1.37 per share in the third

quarter ended Sept 30. Analysts on average were expecting a

profit of $1.41 per share.

(Reporting by Juveria Tabassum; Editing by Sriraj Kalluvila)